Deal for 67.5 acres of mitigation land moves ahead in Tumwater 

The Tumwater City Council agreed to a $12 million purchase and sale agreement for 67.5 acres of property that's going to be part of the city’s habitat conservation plan.  

Only $2 million of the purchase price goes into the deal for the land, while the remainder goes into the transfer of wildlife mitigation credits attached to the property. 

A habitat conservation plan is a framework for allowing development in areas where endangered species are found.

The plan, which is reviewed and approved by the U.S. Fish and Wildlife Service (USFWS), details strategies to offset impacts on affected species in exchange for permitting otherwise legal activities. 

The deal with Puget Western Inc., which was approved at a meeting on Oct. 20, involves land located west of Interstate 5 and south of 93rd Avenue in Thurston County. 

City Administrator Paul Simmons explained to the city council that Puget Western used the property for mitigation purposes under its own habitat conservation plan in 2021 in order to offset the impact of building the Costco warehouse on 93rd Avenue. 

A city staff report explained mitigation credits can be used to address impacts of allowed activities, or to transfer to projects that would require separate approval from USFWS. The mitigation credits can also be sold to city partners. 

The deal also covers a $930,000 endowment, which is managed by the U.S. Bank, to assist with ongoing operation and maintenance of the property.

The city has until Nov. 17 to conduct due diligence on the property. According to contract details, the deal is scheduled to close on Dec. 10 unless it gets terminated beforehand or extended during the due diligence period.